Stablecoins Aren't "Stable"? Deconstructing the Three Price Peg Mechanisms of LisUSD
How does LisUSD maintain its price at $1? It's not about team hype, but rather the automatic operation of three sets of cold, mathematical, and game-theoretic mechanisms.
Technical Breakdown:
Arbitrage Peg: This is the core. When LisUSD falls below $1 on a DEX, arbitrageurs buy and redeem $1 worth of collateral, profiting from the price difference and driving the price back up.
Redemption Peg: Users can always redeem their collateral at $1 (paying a small fee), setting a hard floor for the price.
Incentive Peg: Protocol incentives (such as $LISTA rewards) guide users to mint or redeem LisUSD, regulating market supply and demand.
Data Insights: I monitored the weekly average price range of LisUSD on PancakeSwap and found that it fluctuated between 0.995 and 1.005 99% of the time. During periods of high volatility in BNB, the price difference reached a maximum of 1.5%, but was pulled back by the arbitrage mechanism within 4 hours.
Potential Risks: All three mechanisms rely on on-chain liquidity and active arbitrageurs. If the market experiences extreme panic, on-chain liquidity may dry up, arbitrage may fail, and redemption pressure could surge, testing the liquidation system's processing capacity.
Observation Points: CEX/DEX liquidity depth of lisUSD, and slippage of buy and sell orders for major trading pairs.
Closing Interaction: How would you rate lisUSD's pegging mechanism in the next bear market stress test? (out of 10)
Stablecoins are subject to the risk of decoupling; no pegging mechanism is absolute.
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